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	<title>Comments on: Cornering the Commodity Market</title>
	<atom:link href="http://www.nyquistcapital.com/2007/04/04/cornering-the-commodity-market/feed/" rel="self" type="application/rss+xml" />
	<link>http://www.nyquistcapital.com/2007/04/04/cornering-the-commodity-market/</link>
	<description>More Signal. Less Noise.</description>
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		<title>By: MRV, Luminent, and Fiberxon at Nyquist Capital</title>
		<link>http://www.nyquistcapital.com/2007/04/04/cornering-the-commodity-market/#comment-1162</link>
		<dc:creator>MRV, Luminent, and Fiberxon at Nyquist Capital</dc:creator>
		<pubDate>Tue, 03 Jul 2007 16:12:14 +0000</pubDate>
		<guid isPermaLink="false">http://www.nyquistcapital.com/2007/04/04/cornering-the-commodity-market/#comment-1162</guid>
		<description>[...] MRV is a technology conglomerate with multiple telecom equipment and component product lines. Luminent is the operating unit for optical components and has healthy market share in the FTTH space. MRV announced that they would be merging Luminent with Chinese component manufacturer Fiberxon, which also had been doing well in the FTTH component area. On paper, a very smart move, one I agree with. Unfortunately, while it was a fantastic idea I couldn&#8217;t concoct a more difficult one to execute (see &#8220;Cornering the Commodity Market&#8220;). [...]</description>
		<content:encoded><![CDATA[<p>[...] MRV is a technology conglomerate with multiple telecom equipment and component product lines. Luminent is the operating unit for optical components and has healthy market share in the FTTH space. MRV announced that they would be merging Luminent with Chinese component manufacturer Fiberxon, which also had been doing well in the FTTH component area. On paper, a very smart move, one I agree with. Unfortunately, while it was a fantastic idea I couldn&#8217;t concoct a more difficult one to execute (see &#8220;Cornering the Commodity Market&#8220;). [...]</p>
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		<title>By: ohad</title>
		<link>http://www.nyquistcapital.com/2007/04/04/cornering-the-commodity-market/#comment-1148</link>
		<dc:creator>ohad</dc:creator>
		<pubDate>Mon, 09 Apr 2007 20:46:10 +0000</pubDate>
		<guid isPermaLink="false">http://www.nyquistcapital.com/2007/04/04/cornering-the-commodity-market/#comment-1148</guid>
		<description>http://www.lightreading.com/document.asp?doc_id=120485


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&quot;We realize we can&#039;t pull fiber into the living unit every time,&quot; says Brian Whitton, executive director of Access Network Design and Integration with Verizon. In those cases, Verizon installs a special MDU ONT in the basement of the building that serves multiple units. The last few feet are usually covered by the building&#039;s coax wiring. In instances where this can&#039;t be done, Verizon uses VDSL.

How much the network performance is compromised depends on the unit&#039;s distance from the ONT and the type of wiring used. &quot;We&#039;ve done testing in the Empire State Building. With VDSL1, we can deliver 30 Mbit/s and with VDSL2 we can deliver 75 Mbit/s,&quot; says Whitton.


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		<content:encoded><![CDATA[<p><a href="http://www.lightreading.com/document.asp?doc_id=120485" rel="nofollow">http://www.lightreading.com/document.asp?doc_id=120485</a></p>
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&#8220;We realize we can&#8217;t pull fiber into the living unit every time,&#8221; says Brian Whitton, executive director of Access Network Design and Integration with Verizon. In those cases, Verizon installs a special MDU ONT in the basement of the building that serves multiple units. The last few feet are usually covered by the building&#8217;s coax wiring. In instances where this can&#8217;t be done, Verizon uses VDSL.</p>
<p>How much the network performance is compromised depends on the unit&#8217;s distance from the ONT and the type of wiring used. &#8220;We&#8217;ve done testing in the Empire State Building. With VDSL1, we can deliver 30 Mbit/s and with VDSL2 we can deliver 75 Mbit/s,&#8221; says Whitton.</p>
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		<title>By: Bandgap</title>
		<link>http://www.nyquistcapital.com/2007/04/04/cornering-the-commodity-market/#comment-1147</link>
		<dc:creator>Bandgap</dc:creator>
		<pubDate>Mon, 09 Apr 2007 19:31:12 +0000</pubDate>
		<guid isPermaLink="false">http://www.nyquistcapital.com/2007/04/04/cornering-the-commodity-market/#comment-1147</guid>
		<description>The way apartment towers work is they have their own residents association that handles utlities issues, and the bandwidth pipe is just another. For example, the new trend is that cooking gas gets supplied to a central manifold and then metered to each apartment. What happens if the gas leaks and the whole tower blows up? Nobody is worrying about that, why would they worry about a 6 nines telco SLA? The ethernet switch gets put into a locked cabinet and the service provider has a key.

No TV? Just call the guy and yell - he&#039;s round the street corner, anyway. It works just fine - no &#039;customer care&#039; representative, no waiting all day for the service tech to show up. That&#039;s capitalism in action - in comparison, big telco&#039;s are socialist empires.</description>
		<content:encoded><![CDATA[<p>The way apartment towers work is they have their own residents association that handles utlities issues, and the bandwidth pipe is just another. For example, the new trend is that cooking gas gets supplied to a central manifold and then metered to each apartment. What happens if the gas leaks and the whole tower blows up? Nobody is worrying about that, why would they worry about a 6 nines telco SLA? The ethernet switch gets put into a locked cabinet and the service provider has a key.</p>
<p>No TV? Just call the guy and yell &#8211; he&#8217;s round the street corner, anyway. It works just fine &#8211; no &#8216;customer care&#8217; representative, no waiting all day for the service tech to show up. That&#8217;s capitalism in action &#8211; in comparison, big telco&#8217;s are socialist empires.</p>
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		<title>By: Andrew Schmitt</title>
		<link>http://www.nyquistcapital.com/2007/04/04/cornering-the-commodity-market/#comment-1149</link>
		<dc:creator>Andrew Schmitt</dc:creator>
		<pubDate>Mon, 09 Apr 2007 18:40:25 +0000</pubDate>
		<guid isPermaLink="false">http://www.nyquistcapital.com/2007/04/04/cornering-the-commodity-market/#comment-1149</guid>
		<description>That&#039;s a great question if it is true - do you have the link to the info?

I would guess that coax in an MDU would be a lot trickier given it must be shared (it might even be owned by) the cableco. There also may not be home runs of coax to the wiring closet.

Coax would be preferred because it makes sending the video a whole lot easier. But I bet the infrastructure headaches in an MDU situation offset this.</description>
		<content:encoded><![CDATA[<p>That&#8217;s a great question if it is true &#8211; do you have the link to the info?</p>
<p>I would guess that coax in an MDU would be a lot trickier given it must be shared (it might even be owned by) the cableco. There also may not be home runs of coax to the wiring closet.</p>
<p>Coax would be preferred because it makes sending the video a whole lot easier. But I bet the infrastructure headaches in an MDU situation offset this.</p>
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		<title>By: ohad</title>
		<link>http://www.nyquistcapital.com/2007/04/04/cornering-the-commodity-market/#comment-1150</link>
		<dc:creator>ohad</dc:creator>
		<pubDate>Mon, 09 Apr 2007 18:30:46 +0000</pubDate>
		<guid isPermaLink="false">http://www.nyquistcapital.com/2007/04/04/cornering-the-commodity-market/#comment-1150</guid>
		<description>btw,

in an interview with  Verizon representetives  they claim that in older buildings ,they would rather use special MDU ONTs and link each apartment via coax.  VDSL is their last choice . Any idea why they prefer coax, even though a trial conducted using VDSL2 in the empire state building showed a rate of 75Mbps?
 Perhaps the fact they chose MOCA for home network wiring played a role?</description>
		<content:encoded><![CDATA[<p>btw,</p>
<p>in an interview with  Verizon representetives  they claim that in older buildings ,they would rather use special MDU ONTs and link each apartment via coax.  VDSL is their last choice . Any idea why they prefer coax, even though a trial conducted using VDSL2 in the empire state building showed a rate of 75Mbps?<br />
 Perhaps the fact they chose MOCA for home network wiring played a role?</p>
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		<title>By: Andrew Schmitt</title>
		<link>http://www.nyquistcapital.com/2007/04/04/cornering-the-commodity-market/#comment-1151</link>
		<dc:creator>Andrew Schmitt</dc:creator>
		<pubDate>Mon, 09 Apr 2007 16:06:13 +0000</pubDate>
		<guid isPermaLink="false">http://www.nyquistcapital.com/2007/04/04/cornering-the-commodity-market/#comment-1151</guid>
		<description>You cannot upgrade 100 to 1000 base T over the same topology because they have different reach limitations. The apartment you describe would have equipment on every floor of the building. Who is responsible for maintaining it? You need more equipment in the basement.

PON eliminates all of the active electronics between the demac and the CO. It is attractive to the Telcos because of low OPEX and appears to be infinitely upgradeable.

I&#039;ve heard the patch panel hell story for the CO but it sounds like nonsense to me. Going from copper to PON reduces the overall cable count by a factor of 32, and the cables themselves (fiber) are smaller &amp; lighter. GOing to WDM PON to reduce it further seems like a lot of technology for relatively little incremental gain.</description>
		<content:encoded><![CDATA[<p>You cannot upgrade 100 to 1000 base T over the same topology because they have different reach limitations. The apartment you describe would have equipment on every floor of the building. Who is responsible for maintaining it? You need more equipment in the basement.</p>
<p>PON eliminates all of the active electronics between the demac and the CO. It is attractive to the Telcos because of low OPEX and appears to be infinitely upgradeable.</p>
<p>I&#8217;ve heard the patch panel hell story for the CO but it sounds like nonsense to me. Going from copper to PON reduces the overall cable count by a factor of 32, and the cables themselves (fiber) are smaller &#038; lighter. GOing to WDM PON to reduce it further seems like a lot of technology for relatively little incremental gain.</p>
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		<title>By: Bandgap</title>
		<link>http://www.nyquistcapital.com/2007/04/04/cornering-the-commodity-market/#comment-1152</link>
		<dc:creator>Bandgap</dc:creator>
		<pubDate>Mon, 09 Apr 2007 15:22:57 +0000</pubDate>
		<guid isPermaLink="false">http://www.nyquistcapital.com/2007/04/04/cornering-the-commodity-market/#comment-1152</guid>
		<description>I criticized PON as a US relic because of its telco-centric assumptions. Greenfields can be built cheaper &amp; simpler based on the PC economy. For example, 100BASE-T is so absurdly cheap that it should be the distribution scheme of choice for apartment towers. It can be upgraded to 1000BASE-T with no change in wiring, esp since many of the apartment towers are yet to be built.

CPE power is another hoary chestnut. Apartment complexes already have UPS installed for emergency lighting, and anyway in many countries there&#039;s no point trying to call  in the first place :-) WDM reduces patch panel hell on the CO side, &amp; it can be coarse to start with.</description>
		<content:encoded><![CDATA[<p>I criticized PON as a US relic because of its telco-centric assumptions. Greenfields can be built cheaper &amp; simpler based on the PC economy. For example, 100BASE-T is so absurdly cheap that it should be the distribution scheme of choice for apartment towers. It can be upgraded to 1000BASE-T with no change in wiring, esp since many of the apartment towers are yet to be built.</p>
<p>CPE power is another hoary chestnut. Apartment complexes already have UPS installed for emergency lighting, and anyway in many countries there&#8217;s no point trying to call  in the first place :-) WDM reduces patch panel hell on the CO side, &amp; it can be coarse to start with.</p>
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		<title>By: Andrew Schmitt</title>
		<link>http://www.nyquistcapital.com/2007/04/04/cornering-the-commodity-market/#comment-1153</link>
		<dc:creator>Andrew Schmitt</dc:creator>
		<pubDate>Mon, 09 Apr 2007 12:45:32 +0000</pubDate>
		<guid isPermaLink="false">http://www.nyquistcapital.com/2007/04/04/cornering-the-commodity-market/#comment-1153</guid>
		<description>I am at odds with the promoters of WDM PON as to it&#039;s usefulness. Google &quot;WDM PON British Telecom&quot; for some interesting papers. I think they have the only WDM scheme that truly makes economic sense, long reach, 10G, WDM PON that cuts the number of central offices in Britain from 5000 to 100. That&#039;s revolutionary.</description>
		<content:encoded><![CDATA[<p>I am at odds with the promoters of WDM PON as to it&#8217;s usefulness. Google &#8220;WDM PON British Telecom&#8221; for some interesting papers. I think they have the only WDM scheme that truly makes economic sense, long reach, 10G, WDM PON that cuts the number of central offices in Britain from 5000 to 100. That&#8217;s revolutionary.</p>
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		<title>By: ohad</title>
		<link>http://www.nyquistcapital.com/2007/04/04/cornering-the-commodity-market/#comment-1154</link>
		<dc:creator>ohad</dc:creator>
		<pubDate>Mon, 09 Apr 2007 09:24:36 +0000</pubDate>
		<guid isPermaLink="false">http://www.nyquistcapital.com/2007/04/04/cornering-the-commodity-market/#comment-1154</guid>
		<description>There&#039;s something which is still unclear to me about the use of DWM on the access vs. transport side of the network.

assuming a carrier links a MDU with 60 apartments with FTTH. Can it deploy a limited amount( lets say 2-3 lines) of fibre from the central office to the basement, and from there simply deploy optic fibres, one for each unit equipped with an ONT?
If yes, the load on those 2-3 cables connecting the splitter to the central office should be pretty big. In that case, WDM makes sense also as an access technology???

Is that what the term &quot;WDM-PON&quot; refers to ?

I probably mixed up some technical terms  but the basic idea is: deploy less fiber from the central office to the basement, and use WDM to deal with the fiber exhaust.

thanks</description>
		<content:encoded><![CDATA[<p>There&#8217;s something which is still unclear to me about the use of DWM on the access vs. transport side of the network.</p>
<p>assuming a carrier links a MDU with 60 apartments with FTTH. Can it deploy a limited amount( lets say 2-3 lines) of fibre from the central office to the basement, and from there simply deploy optic fibres, one for each unit equipped with an ONT?<br />
If yes, the load on those 2-3 cables connecting the splitter to the central office should be pretty big. In that case, WDM makes sense also as an access technology???</p>
<p>Is that what the term &#8220;WDM-PON&#8221; refers to ?</p>
<p>I probably mixed up some technical terms  but the basic idea is: deploy less fiber from the central office to the basement, and use WDM to deal with the fiber exhaust.</p>
<p>thanks</p>
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		<title>By: Andrew Schmitt</title>
		<link>http://www.nyquistcapital.com/2007/04/04/cornering-the-commodity-market/#comment-1155</link>
		<dc:creator>Andrew Schmitt</dc:creator>
		<pubDate>Sun, 08 Apr 2007 18:09:59 +0000</pubDate>
		<guid isPermaLink="false">http://www.nyquistcapital.com/2007/04/04/cornering-the-commodity-market/#comment-1155</guid>
		<description>I&#039;m trying to find anything in the above comment that is true.

1. Bandwidth is not cheap. It&#039;s getting cheaper but thats not the same as cheap.
2. PON has nothing to do with the US, and was installed in Japan in quantity well before it was here.
3. Apartment towers are best suited for VDSL and Ethernet backhaul. If fiber is in place WDM never makes sense. So far, WDM only is economical if you have fiber exhaust.
4. PON has nothing to do with backhaul. BT is looking at WDM PON with backhaul, but it&#039;s still PON.</description>
		<content:encoded><![CDATA[<p>I&#8217;m trying to find anything in the above comment that is true.</p>
<p>1. Bandwidth is not cheap. It&#8217;s getting cheaper but thats not the same as cheap.<br />
2. PON has nothing to do with the US, and was installed in Japan in quantity well before it was here.<br />
3. Apartment towers are best suited for VDSL and Ethernet backhaul. If fiber is in place WDM never makes sense. So far, WDM only is economical if you have fiber exhaust.<br />
4. PON has nothing to do with backhaul. BT is looking at WDM PON with backhaul, but it&#8217;s still PON.</p>
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